Flybe

Rachel Reeves Excerpts

Tuesday 14th January 2020 Commons Chamber

[Paul Maynard]

I reassure my hon. Friend that we are working hard on behalf of Flybe and Southampton airport to find solutions wherever we can. He is right to point out the importance of improving regional connectivity across all modes, as the Prime Minister said today.

[Rachel Reeves (Leeds West) (Lab)]

There is something of a pattern developing. We have had the collapse of Monarch and of Thomas Cook, and now the potential collapse of Flybe. When, in the last Parliament, the Business, Energy and Industrial Strategy Committee took evidence on the collapse of Thomas Cook, the evidence we heard from the business and the trade unions was the same; they said that the Government were asleep at the wheel. What lessons have the Government learned from that collapse? What are they doing to ensure that passengers are protected, that critical routes that connect regional towns and cities are supported and that the taxpayer does not end up footing the bill for another corporate failure?

[Paul Maynard]

I hear what the hon. Lady says. I am sure she knows that across Europe as a whole the airline sector is a highly volatile market. I do not accept her comparison at all. We continue to work hard and I have made comments already about public service obligation flights.

Thomas Cook

Rachel Reeves Excerpts

Wednesday 25th September 2019 Commons Chamber

[Mr Speaker]

Order. To this point, the erudition of questions has been equalled only by their length. Unfortunately, there is a premium on time, as we have other matters with which we have to deal, so I appeal to colleagues to cast aside pre-written scripts and to confine themselves to single sentence—preferably short sentence—questions, without preamble, so that we can make progress.

[Rachel Reeves (Leeds West) (Lab)]

The BEIS Committee believes that Thomas Cook’s directors and auditors have serious questions to answer. In the past five years, £20 million in bonuses has been paid to directors, and the company has now gone under with debts of more than £3 billion. Will the Secretary of State for Transport confirm that the directors of Thomas Cook will not be able to continue as directors at any other firm until the Insolvency Service has completed its investigation? Will the Government commit to replacing the FRC with a regulatory framework that holds directors to account, as our Committee has called for?

[Grant Shapps]

I think I answered the first question about the Insolvency Act and the Company Directors Disqualification Act. As the hon. Lady knows, it is for the official receiver to do that part of the work, and I cannot pre-empt it. She tempts me to stray into other areas, which are a long way from the transport brief, so I think I had better not answer now.

Rail Timetabling

Rachel Reeves Excerpts

Monday 4th June 2018 Commons Chamber

[Chris Grayling]

I completely agree with my right hon. Friend, and I have communicated that to the company concerned.

[Rachel Reeves (Leeds West) (Lab)]

Last week 49 trains were cancelled in my constituency, particularly at Bramley train station, meaning that passengers were late for work, for college and for other appointments. Frankly, passengers have lost faith in the Secretary of State. Is it not about time he stepped aside and allowed someone who can fix this problem to do the job?

[Chris Grayling]

This problem needs to be fixed as quickly as possible. I respectfully remind the Opposition that a private rail company is involved. Opposition Members keep telling me that we should nationalise it and have the Government running the trains, so they cannot have it both ways.

Transport Secretary: East Coast Franchise

Rachel Reeves Excerpts

Wednesday 23rd May 2018 Commons Chamber

[Andy McDonald]

I’ll tell you what: I will answer one intervention and when I have finished with that one, I’ll see if I should answer another one—how does that go as a deal?

My hon. Friend the Member for Blaydon (Liz Twist) is entirely correct about that, and she is right about the response from the people who work on the railway. The investment in their training and performance reflected that and the benefits of the quality of the railway are because of the hard work and dedication of the people who work within it.

The Secretary of State said more than once that Virgin-Stagecoach got its numbers wrong when its bid for the east coast franchise was accepted in 2014. Why, then, did the Department accept the bid? What due diligence of the bid took place? Two of the Department’s franchise bid advisers told the Transport Committee on Monday that the Virgin-Stagecoach bid got through the DFT’s financial robustness test and financial risk assessment test. If that is the case, the financial robustness test and the financial risk assessment test are wholly ineffective and inadequate. Those same witnesses—the Department’s own advisers—suggested that the east coast franchise was doomed from day one. That is hardly a ringing endorsement from those in the know. In all those circumstances, what faith can we have in the Department’s processes?

This week it emerged that the Secretary of State allowed HS2 to appoint Ernst and Young to investigate Carillion, notwithstanding that EY was advising HS2. Clearly that is a direct, obvious and major conflict of interest. The Business, Energy and Industrial Strategy and the Work and Pensions Committees asked if appropriate diligence took place. It seems that the Secretary of State’s failure to conduct proper due diligence is not isolated. EY, it should be recalled, is one of the Department’s technical advisers on the east coast operator of last resort.

Stagecoach knew that it would not meet its revenue targets weeks after taking over the east coast franchise in March 2015. The company was in constant dialogue with the Department about it. The Secretary of State has been in post since July 2016 and must have known about this for that period of time. Why did he do nothing? Has not this Transport Secretary been asleep at the wheel?

We learned this morning that the Government knew that Carillion was at risk for more than a year before the company went bust. As with the east coast franchise, the Government sat on their hands and did nothing. What about the Department’s managing director for passenger rail services, Peter Wilkinson, who was brought in at such great expense in 2012 to “get rail franchising back on track”? I am not a personnel expert, but I would say that Mr Wilkinson must be in breach of his contract.

Let us get into some of the details. On 14 Feb 2018, DFT OLR Ltd—presumably OLR stood for “operator of last resort”—was renamed London North Eastern Railway Ltd. It is a company limited by shares to a nominal value of just £1. The company has six directors, four of whom are listed with the occupation “civil servant”. They include the DFT’s head of passenger service, Peter Wilkinson; the DFT’s lead on in-franchise change, Richard Cantwell; and the DFT’s head of franchise policy and design, Simon Smith—the other civil servant does not show up on the DFT’s organogram.

Not only was LNER established in February, but the domain name was registered on 29 March. Why has it taken the Secretary of State three months to inform the House of a decision that he took all those months ago? Last year, it emerged that the Government decided to cancel rail electrification projects in March but they did not announce the decisions until after the general election in July. The collapse of the east coast franchise should set alarm bells ringing at the Department for Transport.

[Rachel Reeves (Leeds West) (Lab)]

Virgin-Stagecoach has let down passengers, as well as the taxpayer. Does my hon. Friend agree that Virgin-Stagecoach should not be allowed to bid for any other train routes? If it were, that would make a mockery of the whole system of privatisation and outsourcing, with absolutely no responsibility or accountability?

[Andy McDonald]

My hon. Friend makes a very good point: we seem to be in the business of rewarding failure. The smack on the wrist for Virgin-Stagecoach was to give it an extension on the west coast line. How on earth does that relate to a franchise that has failed?

As I said, the collapse of the east coast franchise should set alarm bells ringing at the DFT. The Secretary of State acknowledges that his Department accepted a bid that was too high, yet at the time of the bid, Virgin Trains East Coast was told by the DFT that it was the highest-quality bid that it had ever received. If the highest-quality bid ever received could go so badly wrong so quickly, what does that mean for other franchises?

--- Later in debate ---

16:00

Division 163

Ayes: 271

---

Labour: 229
Scottish National Party: 23
Liberal Democrat: 10
Plaid Cymru: 4
Independent: 3
Green Party: 1

Noes: 304

---

Conservative: 295
Democratic Unionist Party: 7
Independent: 2

[Rachel Reeves (Leeds West) (Lab)]

On a point of order, Mr Deputy Speaker. At 10 minutes past 3 this afternoon, just after the Secretary of State for Transport left the Chamber, he issued a press release on plans to tackle poor performance at Northern Rail. I wonder whether the Secretary of State, who is almost back in his place, has indicated any intention to make a statement to the House allowing right hon. and hon. Members to question the Government on those plans, which are of huge significance to many of our constituents.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

I have certainly not been given any notification that the Secretary of State wants to come back at this moment, but there is a good chance tomorrow morning at business questions, when I have no doubt you will be able to raise this again.

Royal Assent

Rail Announcement

Rachel Reeves Excerpts

Tuesday 27th March 2018 Commons Chamber

[Chris Grayling]

We are slightly in the hands of militant trade unions deciding whether they want to cause trouble, because the analysis of what went wrong showed it was almost entirely down to the action of the trade unions. However, I have also said on many occasions that the unions were not the only issue on that line, and I hope he accepts that performance has improved, but it needs to carry on improving. We need a broad-ranging programme of renewals, because there are still too many track and signal failures, which is why we have set aside the biggest block of funding—£20 billion—for renewals in the next control period. Some of that will flow to the hon. Gentleman’s line, but it will also go around the country to deal with similar issues elsewhere.

[Rachel Reeves (Leeds West) (Lab)]

Following the excellent question from my hon. Friend the Member for Wakefield (Mary Creagh), may I pick up on the issue of Virgin-Stagecoach and the east coast main line? In a matter of weeks or months the Government will have to make a decision for passengers in our constituencies in Yorkshire and elsewhere, so can the Secretary of State tell us when a decision will be made, whether there will be penalties for Virgin-Stagecoach for walking away from the contract, and whether he will keep on the table the very sensible option of bringing the line back into public ownership?

[Chris Grayling]

I have said clearly that I am not simply evaluating, but preparing for two options: one is an operator of last resort controlled by my Department, and the other is a not-for-profit direct award. I will make that decision shortly, and when I do I will come back to the House. It is not just about being ready to make a decision; it is also about knowing whether whichever option I choose is ready to happen. It is as much about preparation as it is about deciding. When we are ready to take that step, we will do so. The reason I am taking the time to get this right is that I do not want passengers—the hon. Lady’s constituents—to notice any change from one day to the next. They are the most important people in this.

Rail Update

Rachel Reeves Excerpts

Wednesday 29th November 2017 Commons Chamber

[Chris Grayling]

In the new year we will publish a new process for evaluating new projects and moving them into development. I will happily talk with my hon. Friend about how that process will work and how he can have his project on the Isle of Wight considered.

[Rachel Reeves (Leeds West) (Lab)]

I have written to the Secretary of State about Kirkstall Forge railway station in my constituency. It opened just over a year ago, but only one train stops there an hour. If we are going to open new railway stations, we must have trains stopping at them. Will the Secretary of State agree to meet with Arriva Rail North and myself to talk about the frequency of services at Kirkstall Forge, so that we can get maximum benefit out of this housing and business development?

[Chris Grayling]

I am happy to have that conversation. When a new station opens, it is not unusual for it to start with an hourly service while the passenger ridership builds. Of course, as demand grows, services tend to grow. I am just delighted that we are able to invest in better station facilities in the hon. Lady’s constituency, which I am sure she will agree were long overdue.

Kirkstall Forge Railway Station

Rachel Reeves Excerpts

Wednesday 29th June 2011 Westminster Hall

[Rachel Reeves (Leeds West) (Lab)]

I am pleased to have secured this debate, which means an awful lot to my constituency. The prospects for Kirkstall Forge are hugely important to local residents, who have been waiting a long time for them to advance. My predecessor worked hard on the issue, and I too have devoted a lot of time to it as the Member of Parliament for Leeds West. It would be reassuring to hear some answers about the future of Kirkstall Forge today.

If you will indulge me slightly, Mr Howarth, I want to explain some of the history of the site, which gives an important context to the issues I want to raise. The site lies between the A65 and the river Aire, one of the major routes in and out of Leeds. The A65 runs along the valley floor, past the remains of the Cistercian abbey. Hon. Members may have seen the production “Frankenstein’s Wedding” that took place there, on the BBC recently. It is one of the best preserved abbeys in the country, and as well as playing host to fictional weddings it is the home of an annual festival, which will take place next week, live concerts, plays and, recently, a farmers market.

The monks of the abbey commenced work on the site of the forge more than 800 years ago, and until its closure at the turn of the century it could lay claim to being the longest operating forge in the country. The monks powered their forge through a mill race diverted from the river, which remains today. More recently the forge was turned to heavy industrial use, seizing the opportunities of first rail and then road transport to manufacture axles for trains and motor vehicles. The forge employed an army of workers, who were housed in Hawksworth wood, just up the hill from the site. Its economic success depended on a stop on a railway line at the forge site.

Now that has all gone. The high wall that once hid a hive of activity is now a barrier between the community and derelict space. Since the forge closed it has been purchased by a developer, laying the groundwork for a major project that could mean the forge being brought back into the heart of the Kirkstall community. The plans for Kirskstall Forge are exciting. They offer the prospect of more than 2,000 jobs and more than 1,000 new homes—regeneration for an area much in need of investment. Crucially, however, they also offer improved sustainable transport into Leeds city centre in the east and Bradford to the west, because a new station is integral to the plans. That is why this debate falls within the remit of the Department for Transport.

High-speed rail and the southern entrance to Leeds city station are welcome developments in transport infrastructure in our city. I know that they will bring Leeds significant benefits. However, the project I am outlining, incorporating improvements to stations and the development of two stations—at Kirkstall Forge and at Apperley Bridge—is part of the Leeds rail growth package. When decisions were made about investment in major transport projects in October, there were three categories: supported projects, unsupported projects and a rather more ambiguous development pool in the middle. Kirkstall Forge fell into that uncertain hinterland, where 22 schemes must find extra money if they are to be successful. Those schemes have sat in limbo since then.

The Secretary of State for Transport told the House that schemes in the development pool would be

“challenged…to consider the scope of the scheme, its cost, lower-cost alternatives and their ability to contribute more locally.”—[Official Report, 26 October 2010; Vol. 517, c. 179.]

The Secretary of State also referred to a further 34 schemes that would be considered as candidates for the development pool, but which had not quite made it that far. The Government have invited improved funding offers, and indicated that final decisions about support for schemes would be made by the end of 2011. I would appreciate it if the Minister would today confirm the timetable for making those decisions, so that we can have some clarity about the process, and tell us the number of schemes in the development pool at the moment, their combined value and the money that is likely to be available for them.

People in Leeds West want to know what is happening to the forge site, and developers, councillors and local transport officials need to start putting plans in place.

[Stuart Andrew (Pudsey) (Con)]

I congratulate the hon. Lady on securing this important debate. Does she agree that the benefits are far greater than just for the site itself? The massive developments in my constituency, in Aireborough and Pudsey, could also benefit enormously.

[Rachel Reeves]

The hon. Gentleman is correct. He has been a big supporter of the development, and I appreciate that. The benefits of the Kirkstall Forge site, including the jobs and housing that it will bring, will have an effect across Leeds but also, I believe, as far away as Bradford.

First and foremost among the scheme’s benefits are its transport benefits. The forge site used to depend on a rail halt to distribute axles around the country. Now, the development that is planned depends on a rapid link into Leeds city centre, and to Bradford. The construction of a station at that point would offer journeys of five minutes into Leeds city centre, a vast improvement on the prospects when travelling by bus or car on the busy A65, which can take as long as 30 minutes, as I know well. The new station would be linked to both Kirkstall and Bramley, and would encourage more sustainable transport for both those communities. Does the Minister agree that we should be encouraging a shift away from cars, particularly in busy urban areas where traffic jams are a common problem, with big environmental, business and economic costs?

As well as offering sustainable, efficient transport, the Kirkstall Forge development promises major opportunities for Kirkstall. It would lever in £350 million of investment in the area, and support 2,400 jobs, in construction and then on site permanently in offices, shops and leisure venues. That is hugely important to an area that has for a long time missed out. Average earnings in my constituency are £18,000—two thirds of the national average—and unemployment stands substantially above the national average. The Hawksworth Wood estate, initially built to house workers on the forge site, now has no major local employer, and residents look to the city centre for work, when it exists. The take-up of free school meals at the local primary school runs at 60% —among the highest in the country. Does the Minister recognise that the scheme could bring multi-million pound investment to an area much in need of regeneration, and will he take that into account when considering the funding allocation for the scheme?

Housing is also a big issue. The proposed development includes living space for 2,600 people. It would make use of brownfield land that is currently lying empty to develop houses that would not impinge on Leeds’s green belt, or demand that residents use cars to get to or from work. From my constituency surgeries I know about the huge demand in that part of Leeds for social housing, but also for housing to buy and rent in the private sector. The pressure on developments just a couple of miles away from my constituency in the green belt is also well known to the hon. Member for Pudsey (Stuart Andrew) and other MPs in the area.

When I have raised the issue in the past, I have been told that local support is important. In a letter to me, the Minister of State said:

“We are happy to support the re-opening of new railway stations where the relevant Passenger Transport Executive believes that this is the best way to meet local transport needs and where the scheme demonstrates value for money and is affordable.”

I can confirm, as I have done in the past, the support of Metro, the West Yorkshire passenger transport executive. Leeds city council, local councillors and MPs of all parties across Leeds support the plans, as do the chamber of commerce and local businesses. Crucially, the Minister also knows that the development has strong support in the local community: I have received a significant number of letters and e-mails in support of the project, including from residents’ associations and community groups. I know that many residents will be watching proceedings today or following them later in Hansard to see where we stand. Will the Minister recognise those factors in the decision-making process?

I accept that developments need to be affordable; and cost savings have been made to the scheme. Metro has found approximately 20% in savings through changes to the scheme, and it has also been in discussion with the developers to increase their contribution to the station. At programme entry, the developer had pledged £4 million towards the overall £23 million cost of the Leeds rail growth package. That in itself is a considerable investment on top of the wider investment in the Kirkstall Forge site. The funding requested from the Department for Transport will have fallen by more than 30% since the development pool was initiated, and the station will now cost the Department between £12.3 million and £12.9 million. The local contribution will be over £5.5 million, or more than 25% of the total cost of the project, reflecting an additional £2.6 million investment, subject to agreement.

Will the Minister outline the extent of private contributions to other schemes in the development pool, in comparison with contributions from the private sector and locally for the Leeds rail growth package and the Kirkstall Forge development? Does he believe that this extensive contribution reflects the developer’s commitment to the scheme, as well as the commitment of Leeds city council and the passenger transport executive?

Kirkstall Forge can again play an active part in the life of the local community, as it has done in the past. The Minister’s Department holds the key to unlocking that potential, and the railway station is integral to the development. Without the station, the economic benefits of new business space and housing will be much less clear, as the site will be poorly connected to the urban hubs of Leeds and Bradford. Moreover, the impact of the development on the local community will be significantly enhanced if local people can benefit from improved transport links, and if roads are not congested because of the new homes—and new commuters.

The original Kirkstall forge powered jobs and growth in Leeds and Leeds West, and the new development could play a huge role in the economic future of the area, encouraging more sustainable transport, as well as sustainable housing and sustainable jobs. It has major financial backing, it has widespread local support and it fits the Government’s criteria for rail development. Will the Minister clarify the future of Kirkstall Forge railway station, and its place in the Leeds rail growth package?

--- Later in debate ---

[Norman Baker]

Indeed, Mr Howarth. However, as the hon. Lady finished five minutes early, I have taken the opportunity to put the matter into the general context of our rail policy.

Suffice it to say that we are driving out inefficiencies on the railways and reducing costs. However, we are making what I believe is the biggest investment in rail, including in the Leeds area, that we have seen since Victorian times. That should give the hon. Lady some comfort. There is a hard-nosed economic and environmental case for investing in rail. I turn now to Kirkstall Forge.

A new station at Kirkstall Forge has been a high priority for Metro, the West Yorkshire passenger transport executive, for many years, and I know that considerable progress has been made towards achieving that objective. The coalition Government are committed to localism, and that determines our approach to local rail. We realise that local rail networks have to adapt in order to serve new and expanding communities, which is why we welcome PTEs taking the initiative. PTEs, working with local enterprise partnerships, where they exist, are best placed to identify the needs of local areas, and to identify and secure funding for new lines, new train services or stations, if they believe that that is the best way to meet local transport needs and the wider objectives of economic growth, housing growth and carbon reduction.

The development at Kirkstall Forge is a large one, and in the spirit of localism it is entirely right that Metro should take the lead in developing solutions to the transport issues that the development will give rise to. Metro has a good record in identifying sustainable transport solutions. For example, we welcome Metro’s and Leeds city council’s commitment to more sustainable solutions for the city region, as set out in the local transport plan 3, “My Journey”. We have backed their judgment by providing £12 million towards the cost of the Leeds station southern entrance, which will do much to improve access to new major housing and commercial developments to the south of the city centre.

The proposed Kirkstall Forge station will complement the A65 Kirkstall road quality bus corridor, to which the Department will be making a contribution of £19.8 million, and that is on track to open in 2012. It is a busy and congested corridor that is heavily used by commuters, so these two schemes will help to provide a sustainable alternative to car commuting.

The hon. Lady asked specifically about the shift from the car. The Department recognises, first, that we have to use transport to drive economic growth. Secondly, however, we have a responsibility to use transport in a way that reduces carbon emissions. We are certainly keen to secure a reduction in carbon emissions, and that could mean a modal shift from car to rail, particularly until the road transport network has been decarbonised, which is some way off.

Metro is seeking funding from the Department’s budget for local authority major schemes. The outcome of the spending review is testament to our commitment to such schemes. We recognise that well-designed proposals can make a big contribution to economic growth.

We plan to spend more on local authority major schemes in this spending review period than the average spend over the past 10 years. Nevertheless, that cannot fund all the schemes from the previous regional funding allocations process that promoters wished to deliver, and we will need to rationalise. Put simply, we inherited a completely unrealistic pipeline of schemes, and we have had to rationalise those as best we can. For the future, we want to move away from a top-down approach to determining local transport needs, working towards a more devolved system for funding local authority major schemes, with local enterprise partnerships taking on an important role. However, for this spending review, we need to rationalise the previous Government’s programme, so we have invited final bids from the promoters of 45 schemes from the previous programme. The Leeds rail growth package is one such scheme, and we believe it will now consist of new stations for both Kirkstall Forge and Apperley Bridge. Metro will submit a final bid in September to the Department, which we will consider alongside the others we expect to receive, including bids for maintenance for the Leeds inner ring road and the New Generation Transport trolley bus scheme, and will make an announcement in December 2011. I hope that that helps to confirm the timetable which the hon. Lady asked about.

Although I cannot indicate how successful the Leeds growth package bid might be, because it is a competitive process and obviously the bids are not in yet, we will look favourably on schemes for which promoters have reduced their funding requests to the Department. I can confirm that, and I note the comments that the hon. Lady made about increased private contributions. I am aware that a developer contribution has been secured towards Kirkstall Forge station and that Metro is scaling down the size of the bid by removing some additional car parking schemes at stations elsewhere.

In its bid, Metro will also have to demonstrate that the scheme provides value for money and that there is no ongoing cost to the Department arising from the stations’ introduction. That is an important point, as our policy is that new stations should cover their ongoing costs from newly generated fare income. However, I understand that Metro is confident that over time that will be achieved.

It is proposed that Kirkstall Forge and Apperley Bridge stations will be served by inserting calls in the services that run between Bradford Forster Square and Leeds stations, which have spare capacity to accommodate the new users from the stations. It is for Metro to discuss with Northern train operating company and Network Rail how those calls are to be accommodated within the timetable, given that the additional stops will increase end-to-end journey times by about four minutes in each direction. The good news is that we have recently agreed to fund the provision of additional carriages on the electrified routes to the north-west of Leeds, so Metro and Northern are now in a better position to determine whether further rolling stock will be required to enable the calls to be made.

I have tried to cover the points that the hon. Lady raised. She explicitly asked whether I would take into account wider economic factors in determining applications—yes, we will absolutely do that. The Secretary of State recently published a new transport business case appraisal system, which was announced to Parliament through a written ministerial statement. The hon. Lady may want to get a copy of that. She will be able to see the factors we now take into account to determine transport projects. Broadly speaking, the changes made to the valuation process have increased the value of carbon, so, on the face of it, they marginally benefit public transport schemes and marginally disbenefit road schemes.

The hon. Lady asked about private contributions to other schemes in the development pool. That information is simply not available yet, because we do not know what the final bids from the other schemes will be. The deadline for all bids is September, and obviously we will not be able to make a judgment until they all come in. I reiterate that private contributions are important. We are looking for buy-in, not only from the local transport authority, but from the wider community. Private contributions are therefore important, not simply to reduce the call upon the taxpayer, but to demonstrate commitment to the particular project for which an application is being made. In all the bids that come forward, we will be looking for details of private contributions, the support of the local community, and evidence that there have been sensible attempts to reduce costs wherever possible.

The hon. Lady appears to be confident that Metro has addressed those issues, and if it has, that will count in its bid’s favour, as and when it comes in.

[Rachel Reeves]

I welcome the answers the Minister has given.

To return to the wider economic benefits of the development, a point that I tried to get across was about deprivation in that part of Leeds West, particularly on the Hawksworth Wood estate—I mentioned the proportion of free school meals—and in Bramley, which has one of the highest proportions of young people not in education, employment or training. As well as the aggregate externalities and economic benefits that would come from the development, will the Department look at the importance of economic regeneration and how the returns in areas such as Kirkstall or Bramley might benefit some of the most deprived communities when compared with developments in areas where there are already good jobs and low levels of unemployment?

Norman Baker: As a Government, we recognise the need to support areas where there is economic deprivation. If we applied a simple economic test to everything, there would frankly be a lot of investment in south-east England, because it has a very good rate of return, and not a lot elsewhere. We do not do that. We try to ensure that we take into account a wide range of factors and ensure a modal balance of transport investment, as well as a regional balance. The hon. Lady is right to put those points on the record. They have been noted for when the Department considers the matter, as and when the bid comes in from Metro.

The Secretary of State’s approach to developing a package of bids to be approved has been successful in driving down costs on the bids that have been agreed so far. That has meant that the number of bids that have been able to be approved so far has been greater than if that discipline had not been applied. By driving down costs, we have been able to approve more schemes than would otherwise have been the case, so we have been able to make more progress than many dared hope given the unrealistic pipeline we inherited. That approach is not simply good value for money for the taxpayer, but helpful in spreading the money as widely as possible.

In conclusion, I am grateful to the hon. Lady for raising the issue. I know that there is genuine concern in her constituency and others that the proposed station goes ahead without delay.

[Rachel Reeves]

I have some more questions before the Minister concludes. What is the total pot of money available for the 45 schemes that remain in the development pool? I recognise that due to savings and increased private sector contributions costs may have fallen since the projects went into the development pool, but how much were they worth then? What is the difference between the amount of money in the pool and how much the schemes were bidding for? Does he have that information?

[Norman Baker]

I am not sure that I can give that detailed information now, but I shall write to the hon. Lady. The amount of money available is about £700 million—that is a rough figure for her to consider. I will drop her a line to give her the specific information she asked about.

The debate has been useful. I look forward to receiving a final bid from Metro in September. It will be properly and objectively analysed according to the criteria that Metro has been notified about, which I have referred to today. Decisions will be made known to MPs and others in December.

Oral Answers to Questions

Rachel Reeves Excerpts

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

The hon. Lady is hinting at the fact that, at the moment, far too much time and energy in the rail industry is spent on allocating blame for things that have happened rather than on working out how to prevent them from happening in future. We believe that aligning the financial interests of the train operators and the infrastructure operators, so that they both have a stake in positive outcomes for passengers, is the way forward. We will await Sir Roy McNulty’s final recommendations and set out our proposals for the reform of the industry on that basis.

[Rachel Reeves (Leeds West) (Lab)]

In west Yorkshire, rail fares are set to go up by the retail prices index plus 5% from next year, which is the biggest increase in the country and 2% higher than in other areas. What will the Secretary of State do to avert those crippling hikes for people in Leeds and the rest of the region?

[Mr Hammond]

I cannot avoid the increases in prices to which the hon. Lady refers. They are partly driven by specific increases in rolling stock to alleviate overcrowding in the area. In the medium term, as I said in answer to the previous question, we must drive efficiency in the rail industry, and ensure that the cost base of our railway becomes comparable with those of other European countries, so that the upward pressure on fares can be alleviated.

Transport (Investment)

Rachel Reeves Excerpts

Tuesday 26th October 2010 Commons Chamber

[Mr Hammond]

Where local authorities wish to impose workplace parking levies, they need the Secretary of State’s approval under current legislation. It is, of course, up to local authorities to promote such schemes if they feel that they are appropriate for their areas, but I have said recently that I would expect any further schemes proposed to me to demonstrate that they have properly and effectively consulted local businesses and addressed any proper concerns raised by local businesses during those consultations. So perhaps my hon. Friend can feed that back to Bristol city council.

[Rachel Reeves (Leeds West) (Lab)]

The Leeds rail growth package included a new railway station at Kirkstall Forge. Half of the money was to come from the private sector and would have facilitated private sector housing and business development, bringing hundreds of jobs and homes to one of the most deprived parts of the city. Why has the scheme, which the right hon. Gentleman says is good value for money, been sent back to the drawing board, with devastating prospects for jobs and homes in my constituency?

[Mr Hammond]

Dear, dear, it must be my ears again. I did not hear the hon. Lady mention the Leeds station southern access scheme, which has been approved—[Interruption] If I may say so to the hon. Lady, when one’s constituency is in a city, I think one will find that the effects of transport infrastructure improvement are a little wider than the narrow boundaries of a single constituency. Leeds station southern access scheme has been approved, and two further Leeds schemes, the Leeds rail growth package and the Leeds new generation transport scheme, have been included in the development pool, where we will work with the local authority to look at how we can ensure value for money and get the schemes into the best and most competitive form that they can be, after which we will make a decision on the allocation of the scarce capital that is available. I want to remind the hon. Lady one more time that the transport capital budget has been reduced by 11% for the next four years. The Government formed by her party before the last general election proposed to reduce capital spending by 50%.

Oral Answers to Questions

Rachel Reeves Excerpts

Thursday 22nd July 2010 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

2. Whether an equality impact assessment has been undertaken on the proposals in the June 2010 Budget.

[Rachel Reeves (Leeds West) (Lab)]

5. What assessment the Government Equalities Office has undertaken of the relative effects of the June 2010 Budget on men and on women.

[The Secretary of State for the Home Department and Minister for Women and Equalities (Mrs Theresa May)]

We have had to take tough decisions to reduce the deficit and secure the economic recovery essential to maintaining the living standards of women and families in this country in the longer term. The June Budget does that fairly, with a focus on protecting the most vulnerable in society, including low-income families. Assessing policy options in the light of tough financial constraints is not a one-off but an ongoing process. My officials are working with and talking to Departments about how to take account of equality considerations as they develop and implement the policies that will achieve budget reductions—budget reductions made necessary, I would remind the hon. Member for Llanelli (Nia Griffith), by Labour’s mismanagement of the economy.

[Mrs May]

I think that the hon. Lady is referring to some research that the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) has undertaken. That research is partial in its assessment, because it fails to take into account a whole host of issues in the Budget, including the council tax freeze. The hon. Lady should also recognise the steps that we took in the Budget to protect people on low incomes. They include the exemption from the public sector workers’ freeze—lower-paid public sector workers are predominantly women, and they will be exempt from that pay freeze. We are also working to freeze the basic rate of income tax, to increase the personal allowance, and to remove 880,000 people from income tax altogether, the majority of whom will be women. We are very conscious of the need to look at the impact of the Budget, but I suggest that the hon. Lady needs to look at the good things in it that will help people on low incomes.

[Rachel Reeves]

Mums, children, and women in retirement will contribute twice as much to bringing down the Budget deficit as the predominantly suited men in the square mile will pay through the banking levy. Given that the Government are so keen to stress their family-friendly credentials, does the right hon. Lady feel that that balance is fair?

[Mrs May]

The hon. Lady referred to people in retirement; I would simply remind her that it is this Government who are going to restore the earnings link for pensions. Her Government had 13 years in which to do that, but they failed to do it.